Acquisition of firms that supply inputs such as raw materials is referred to as
A. Conglomerate diversification
B. Horizontal acquisition
C. Retrenchment
D. Vertical acquisition
A(n) ______ is a resource or capability controlled by or available to a firm that gives it
an advantage relative to its competitors in meeting the needs of the customers it serves.
A. Competence
B. Strength
C. Opportunity
D. Competitive advantage
Which of the following is NOT an example of a basic source from which customer
value is derived?
A. Activities that differentiate the product
B. Activities that lower its cost
C. Activities that add to product complexity
D. Activities that meet the customer’s need more quickly
Today, global means:
A. Locating operations in numerous countries
B. Selling goods in overseas markets
C. Using resources from other markets
D. Getting resources and talent from around the globe and selling worldwide
The availability of substitutes affects which of the RBV guidelines?
A. Resources are more valuable when they are scarce
B. Resources are more valuable when they are durable
C. Resource are more valuable when they are scarce
D. Resources are more valuable when they are critical to being able to meet a
customer’s need better than other alternatives
Although industries can be characterized as global or multidomestic, few ___ cases of
either type exist. A. “combined”
B. “blended”
C. “hybrid”
D. “pure”
One implication of viewing strategic management as a process is that strategy
formulation and implementation are:
A. Sequential
B. Simultaneous
C. Random
D. Reversible
(p.217) The grand strategy involving the acquisition of businesses that serve as a
customer for the firm’s outputs, such as warehouses for finished products is called:
A. Backward concentric diversification
B. Pooled horizontal integration
C. Forward vertical acquisition
D. Sequential horizontal integration
The success of bonus compensation as an incentive hinges on:
A. The executive in question
B. The success of the firm
C. The match between the plan and the firm’s strategic objectives
D. The positive link between shareholder wealth and personal wealth maximization
The utilitarian approach focuses on
A. Motives
B. Feelings
C. Actions
D. Reactions
It is especially important that managers take into account their level of ________ when
comparing their cost structure for activities on their value chain with those of key
competitors.
A. Competition
B. Horizontal integration
C. Vertical integration
D. Concentric diversification
Giving the originator of an idea some freedom to make decisions about its further
development and implementation:
A. Rather than relying on multiple levels of approval, enhances intrapreneurship
B. Can increase the downside risk to executives
C. Can actually discourage intrapreneurship
D. Can help limit the downside risk
Adequate working conditions, freedom from arbitrary and capricious behavior on the
part of company officials and share in fringe benefits are claims of which of these
stakeholders?
A. Customers
B. Employees
C. Suppliers
D. Competitors
_______ delegate authority to ______
A. owners; managers
B. managers; owners
C. managers; suppliers
D. customers; managers
A(n) _______ is a limitation or deficiency in one or more of a firm’s resources or
capabilities relative to its competitors that creates a disadvantage in effectively meeting
customer needs.
A. Weakness
B. Threat
C. Competitive limit
D. Marginal resource
Involving operating managers can increase the __________ of operating managers to
the strategies developed.
A. Resistance
B. Limitations
C. Commitment
D. Evaluation
Ability to expand capacity effectively, limit number of designs and develop standards
represents the introduction stage of industry evolution for which function?
A. Production operations
B. Marketing
C. Finance
D. R & D
Managers who take the ______ approach judge how consistent actions are with equity,
fairness and impartiality in the distribution of rewards and costs among individuals and
groups.
A. Social justice
B. Economic man
C. Moral rights
D. Utilitarian
The strategic managers at the highest level of the organization:
A. Review employee complaints
B. Declare the firm’s sense of values
C. Are appointed
D. Prepare budgets
The mission statement is a message designed to be inclusive of the expectations of
_______ stakeholders for the company’s performance over the ______.
A. All; long run
B. Only key; short run
C. All; short run
D. Only key; long run
This term refers to descriptive characteristics that can be used to differentiate groups of
present or potential customers.
A. Geographics
B. Demographics
C. Buyer behaviors
D. Psychographics
The least profitable firms are:
A. Broadly diversified firms whose strategies are build around very general resources
such as money
B. Ones that involve combining resources into competitive advantage
C. Rigidly specialized in an attractive industry
D. Flexible
Bartlett and Ghoshal studied several of the most successful global companies in the last
decade. Their research suggests that combining flexible responsiveness with integration
and innovation:
A. Requires consistency in the management role in a twenty-first century company
B. Is based on an institution, not a process in a twenty-first century company
C. Determines the value of the management role in a twenty-first century company
D. Requires rethinking the management role and the distribution of management roles
within a twenty-first century company
A(n) ___________ is an innovation in a product, process, technology or the cost
associated with it that represents a quantum leap forward in one or more of these ways.
A. Breakthrough innovation
B. Invention
C. “Home-run” innovation
D. Cost-improvement
Which of the following types of strategic control has a low degree of formalization?
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control
Which of the following is NOT a reason why defining an industry’s boundaries is
important?
A. It helps executives determine the arena in which their firm is competing
B. It focuses attention on the firm’s competitors
C. It helps executives determine key factors for success
D. Stakeholders demand it
Because leaders are attempting to embrace change, they are often _____________ their
organization.
A. Abandoning
B. Rebuilding or remaking
C. Divesting businesses in
D. Repositioning
For the ABC Company, the Omega business is in a dominant market share position in a
fast growing market. As per the BCG matrix, Omega is a
A. Cash cow
B. Question mark
C. Star
D. Dog
Economic, social, and psychological satisfaction in the place of employment is a typical
claim of which stakeholder group?
A. Stockholders
B. Creditors
C. Employees
D. Society
In overseeing the management of a firm, the board of directors operates as
representatives of the
A. Governmental agencies
B. Firms stockholders
C. Firms employees
D. Top management